TETFUND ACT - TERTIARY EDUCATION TRUST FUND (ESTABLISHMENT, ETC) ACT, 2011
This Act repeals the Education Tax Act Cap. E4, Laws of the Federation of Nigeria, 2004 and Education Tax Fund Act No. 17, 2003 and establishes the Tertiary Education Trust Fund charged with the responsibility for imposing, managing and disbursing the tax to public tertiary institutions in Nigeria.
TERTIARY EDUCATION TRUST FUND (ESTABLISHMENT, ETC) ACT, 2011
ARRANGEMENT OF SECTIONS
1. Imposition of tertiary education tax.
2. Assessment and collection of tax.
3. Establishment of the Tertiary Education Trust Fund.
4. Establishment of the Board of Trustees.
5. Cessation of membership.
6. Functions of the Board of Trustees.
7. Management and administration of the Fund.
8. Appointment of the Executive Secretary and other staff of the Fund.
13. Limitation of suits against the Fund, etc.
14. Service of documents.
15. Restriction on execution against property of the Fund.
16. Indemnity of officers.
TERTIARY EDUCATION TRUST FUND (ESTABLISHMENT, ETC) ACT, 2011
An Act to repeal the Education Tax Act Cap. E4 Laws of the Federation of Nigeria, 2004 and Education Tax Fund (Amendment) Act No. 17, 2003 and establish the Tertiary Education Trust Fund charged with the responsibility for imposing, managing and disbursing The Education Tax to public tertiary education institutions in Nigeria; and for related matters.
[ ] Commencement
ENACTED by the National Assembly of the Federal Republic of Nigeria -
(1) As from the commencement of this Act, there shallbe charged and payable an annual tertiaryeducation tax which shall be assessed, collected and administered in accordance with the provisions of this Act.
(2) The tax at the rate of 2 percent shall be charged onthe assessable profit of a company registeredinNigeria (in this Act referred to as “a company”).
(3) The assessable profit of a company shall be ascertained in the manner specified in theCompanies Income Tax Act or the Petroleum Profits Tax Act (in this Act referred to as “the Act”)as the case may be.
(4) Without prejudice to the provision of subsection (3) of this section, section 60 of the Petroleum Profit Tax Act shall not apply to the assessment, collection and payment of tertiary education tax and all companies chargeable to tax under the PetroleumProfit Tax Act shall be liable to pay the full extent of the tax imposed under this Act.
Imposition of tertiary education tax.
(1) The Federal Inland Revenue Service (in this Act referred to as “the Service”) shall assess and collect from a company the tax imposed by this Act and accordingly-
(a) shall, when assessinga company, for companies income tax or petroleum profit taxfor an accounting period of the company, also proceed to assess the company for the tax dueunder this Act; and
(b) the provisions of the Act relating to the collection of companies income tax orpetroleum profit tax shall, subject to this Act, apply to the tax due under this Act.
(2) The tax imposed by this Act shall be due and payable
within 60 days after the Service hasserved notice of the
assessment on a company.
(3)The Service may, for the purpose of assessment and
collecting the tax imposed by this Act, devise such forms
as it may deem necessary.
Assessment and collection of tax.
(1) There is established the Tertiary Education Trust Fund (in
this Act referred to as “the Fund”) for the rehabilitation,
restoration and consolidation oftertiary education in Nigeria
which shall be managed by the Board of Trustees established
under section 4 of this Act.
(2) The Fund –
(a) shall be a body corporate with perpetual succession
and a common seal; and
(b) may sue and be sued in its corporate name.
(3) The Service shall pay the tax collected under this Act into the
Fund and shall, when doing so, submit to the Fund, in such
form as the Board of Trustees shall approve, a return
(a) the name of the company making the payment;
(b) the amount collected;
(c) the assessable profit of the company for the accounting period; and
(d) such other information as may be required bythe Fund for the proper administration of the tax.
(4) The Fund shall, before disbursement of theamount in the Fund, set aside in each year, an amount not exceeding 5 percent of the total monies accruing to the Fund in the preceding year which shall be applied-
(a) for the cost of administration and management of the Fund;
(b) for the maintenance of any property acquiredby or vested in the Fund and generally to payfor services rendered to the Fund;
(c) for project monitoring;
(d) to meet all the needs of the Fund necessary forthe due
administration and implementationof the purpose of this
Establishment of the Tertiary Education Trust Fund
(1)There is established for the Fund, a Board of Trustees (in this Act referred to as “the Board of Trustees”) which shall consist of –
(a) a chairman who shall –
(i) be a person with good knowledge in finance and administrative matters;
(ii) have qualifications and experiences as are required to perform the functions of that office under this Act.
(b) 6 persons, each representing a geo-political zone in the country;
(c) a representative each of the following Federal Ministries, who shall not be below the rank of a Director-
(i) Education; and
(d) a representative each from the Universities, Polytechnics and Colleges of Education; and
(e) theExecutive Secretary, who shall be the Secretary to the Board of Trustees.
(2)The membership of the Board of Trustees shall reflect the six
geo-political zones of the Federation.
(3) The members Board of Trustees shall-
(a) be persons with considerable experience from both the public and private sectors to represent the business, financial andeducation sectors;
(b) be appointed by the President on the recommendation of the Minister;
(c) other than the ex-officio members, each hold office for a term of 4 years in the first instance and may be eligible for reappointment for a further term of 4 years and no more;
(d) bepaid such remuneration and allowancesas the President may, from time to time, determine.
(4) The Board of Trustees shall meet for the conduct of its ordinary meetings 4 times in a calendar year.
(5) Notwithstanding subsection (4) of this section, the Board of Trustees may meet to conduct suchother business as exigency demands.
(6) The supplementary provisions contained in the Schedule to this Act shall have effect with respect to the proceedings of the Board of Trustees and other matters contained therein.
Establishment of the Board of Trustees
(1) A member of the Board of Trustees shall cease to hold office if he-
(a) becomes of unsound mind;
(b) becomes bankrupt or makes a compromisewith
(c) is convicted of a felony or any offenceinvolving
(d) is guilty of serious misconduct in relation tohis
(2) A member of the Board of Trustees may be removed from office by the President if he is satisfied that it is not in the interest of the Fund or Public that the member should continue in that office.
(3) A member of the Board of Trustees, other than an ex-officio, may resign his appointment by a notice in writing under his hand, addressed to the President.
(4) Where a vacancy occurs in the membership of the Board of Trustees, it shall be filled by the appointment of a successor to hold office for the remainder of the term of office of his predecessor, so that the successor shall represent the same interest and shall be appointed by the President.
Cessation of Membership
The Board of Trustees shall-
(a) monitor and ensure collection of education tax by the Service and ensure transfer of same to the Fund;
(b) manage and disburse the tax imposed by this Act;
(c) liaise with the appropriate ministries or bodies responsible for collection or safe keeping of the tax;
(d) receive requests and approve admittable projects after due consideration;
(e) ensure disbursement of funds to various public tertiary educational institutions in Nigeria;
(f) monitor and evaluate execution of the projects;
(g) invest funds in appropriate and safe securities;
(h) update the Federal Government on its activities and progress through annual and audited reports;
(i) review progress and suggest improvement within the provisions of this Act;
(j) do such other things as are necessary or incidental to the objects of the Fund under this Act or as may be assigned by the Federal Government;
(k) make and issue guidelines, from time to time, to all beneficiaries on disbursement from the Fund on the use of monies received from the Fund; and
(l) generally to regulate the administration, application and disbursement of monies from the Fund under this Act.
Functions of the Board of Trustees
(1) The Board of Trustees shall administer the tax imposed by this Act and disburse the amount in the Fund to Federal and State tertiary educational institutions specifically for the provision or maintenance of